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MENTAL MAGNET LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
Mental Magnet Ltd (the "Company") is a private company limited by shares and is incorporated, domiciled and registered in England and Wales (Registered number: 16162466). The address of its registered office is 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The following principal accounting policies have been applied:
The Company's ability to meet its future liabilities is therefore dependent on the financial performance, position and liquidity of the Group as a whole. At a Mental S.A. level, considerations included potential risks and uncertainties in the business, credit, market and liquidity risks. Stress testing has been carried out to ensure Mental S.A. has sufficient cash resources to continue in operation for the year to 31 December 2026. This stress testing modelled a scenario with materially reduced levels of cash receipts over the next 12 months. Based on these considerations, together with available market information and the director's knowledge and experience of the Company, the director continues to adopt the going concern basis in preparing the financial statements for the period ended 31 December 2025.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue is recognised on a cost plus 5% basis, in line with the intercompany service agreement with the parent company. Intercompany revenue is recognised when all of the following conditions are satisfied :
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the intercompany service
agreement; and
- the costs incurred under the intercompany service agreement can be measured reliably.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
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